The General Assembly created the medical system 25 years ago as part of an effort to privatize the university hospital, which was run by the state and having financial troubles. Since then, other hospitals have been added to the system, most recently during the tenure of Notebaert, who aggressively pursued acquisitions. Notebaert didn't return phone calls for comment yesterday.
Conflicts bubbled
Conflicts over how the system is run bubbled to the surface in recent months. Physicians raised concerns about Notebaert's leadership in a June letter to Clifford M. Kendall, chairman of the University System of Maryland's Board of Regents, saying relations between the medical system and the medical school had "deteriorated to a point where the future of both institutions is jeopardized." The letter was signed by chairs of various departments.
Specifically, as the most recent example of the "fractured relationship," the doctors complained that Notebaert unilaterally blocked the system's insurance trust from issuing liability coverage to a physician practice outside the system. They contended that the move sets a precedent that could compromise their practice ventures throughout the state.
Some of the doctors took their concerns to O'Malley, who held several meetings with Busch, Erickson and Notebaert. At the same time, the board began deliberations on whom to name as interim CEO.
Inside vs. outside
A rift arose among board members over whether to choose an outside or an inside candidate. While some inside candidates were considered, the board voted to select McDaniel, but problems arose over possible conflicts because of his tenure with a competitor, according to board members. MedStar declined to comment on personnel matters, and McDaniel couldn't be reached for comment.
Meanwhile, over the last month, O'Malley made several appointments to the board, including some people who had not been recommended by the board. While governors have traditionally ratified nominees forwarded by the board, O'Malley had obtained advice from Attorney General Douglas F. Gansler's office stating that the governor does not have to follow those recommendations.
"The governor has made appointments that he believes will serve the long-term interests of the medical system and the doctors, researchers, students and support staff that have made the University of Maryland Medical System what it is today," O'Malley spokesman Rick Abbruzzese said.
